East Asia & Pacific | Forest rents (% of GDP)

Forest rents are roundwood harvest times the product of regional prices and a regional rental rate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
East Asia & Pacific
Records
63
Source
East Asia & Pacific | Forest rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.55109086
1971 0.54870765
1972 0.62016285
1973 0.96070574
1974 0.73932826
1975 0.74745063
1976 0.77366713
1977 0.76524168
1978 0.64951201
1979 0.87658107
1980 0.9530612
1981 0.58902862
1982 0.75548167
1983 0.65056901
1984 0.41716815
1985 0.40416489
1986 0.38322973
1987 0.40134137
1988 0.33993795
1989 0.36257323
1990 0.32234278
1991 0.30028821
1992 0.31798431
1993 0.29063324
1994 0.25764474
1995 0.27235985
1996 0.2772115
1997 0.23557921
1998 0.22580288
1999 0.15560651
2000 0.1457492
2001 0.15296572
2002 0.16139607
2003 0.20697181
2004 0.14540676
2005 0.14619945
2006 0.17069922
2007 0.22546236
2008 0.26146199
2009 0.21796783
2010 0.20655304
2011 0.18892108
2012 0.17366653
2013 0.17219481
2014 0.20863723
2015 0.15388222
2016 0.15233483
2017 0.18979845
2018 0.16167966
2019 0.14763037
2020 0.14614478
2021 0.12960136
2022

East Asia & Pacific | Forest rents (% of GDP)

Forest rents are roundwood harvest times the product of regional prices and a regional rental rate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
East Asia & Pacific
Records
63
Source